Is It Too Late To Consider Buying OCI N.V. (AMS:OCI)?

OCI N.V. (AMS:OCI), might not be a large cap stock, but it saw significant share price movement during recent months on the ENXTAM, rising to highs of €31.60 and falling to the lows of €22.26. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether OCI's current trading price of €22.45 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at OCI’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for OCI

What Is OCI Worth?

Great news for investors – OCI is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is €28.33, but it is currently trading at €22.45 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, OCI’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from OCI?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with an extremely negative double-digit change in profit expected over the next couple of years, near-term growth is certainly not a driver of a buy decision. It seems like high uncertainty is on the cards for OCI, at least in the near future.

What This Means For You

Are you a shareholder? Although OCI is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to OCI, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on OCI for a while, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you want to dive deeper into OCI, you'd also look into what risks it is currently facing. Our analysis shows 4 warning signs for OCI (1 is concerning!) and we strongly recommend you look at these before investing.

If you are no longer interested in OCI, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.